Swatch : Key Figures 2015

Biel / Bienne (Switzerland), 3 February 2016

• Net sales of CHF 8 451 millionfor the Group, 0.9% lower than the previous year at constant exchange rates and 3.0% lower than the previous year at current exchange rates. Calculated in euros, the Group grew 10.3%.
• The Watches & Jewelry segment, including Production, generated net sales of CHF 8 177 million, -0.8% at constant exchange rates. Swiss watch industry exports of wrist watches declined 3.6% in 2015.
• Despite the dismal currency situation, Swatch Group continues its successful long-term strategy of increasing prices only very defensively to insure volume growth.
• Operating profit of CHF 1 451 million, equivalent to an operating margin of 17.2%. Mainly due to additional currency shifts also in the second half of the year, operating margin was about 17% lower in comparison to the previous year.
• In the Watches & Jewelry segment, including Production, operating margin reached 18.8%.
• Net income was CHF 1 119 million, 21.0% below the previous year, due to the strong negative impact of foreign exchange losses and the negative development of interest rates.
• Equity increased to CHF 11.2 billion, equivalent to an equity ratio of 84.7%.
• Dividend proposal unchanged: CHF 7.50per bearer share and CHF 1.50per registered share.
• New share buyback program from 2016 to 2019 to a maximum of CHF 1 billion.
• January 2016 shows positive growth compared to the previous year, especially in mainland China. The Swatch Group expects growth well over 5% for the entire year in local currency.

Outlook for 2016

Group Management expects, despite the ongoing challenging environment in various regions, a sustainable development in sales in local currency in 2016, based on worldwide ongoing very good consumption demand for Swiss watches.

With its worldwide distribution network, the Group is in an excellent position to provide its customers with an array of products, even when tourist flows and consequently purchase locations suddenly change, as was often the case in the year under review. The number of patent applications increased again in the year under review, not only in the area of electronic smart and mobile device products, but also primarily for watches and watch movements. Not only new products from the 20 brands, but also all current brand models which benefit from ongoing demand, will contribute to a good year in 2016. Particularly the new METAS certified antimagnetic Omega Co-Axial Globemaster collection, as well as various Swatch watches such as the Swatch Bellamy, launched in China, with its contactless payment function, will generate very positive sales in China and other regions. Also, the Olympic Games in Rio de Janeiro, Brazil, which start in August, will give the Omega brand, the official Games timekeeper, an additional boost. Tissot, through its long-standing partnership with the NBA, the North American professional basketball league, has become the official timekeeper for the NBA, the women's basketball league WNBA and the NBA Development League, which will generate substantially increased sales for the brand, in both North American and worldwide markets.

Swatch Group, with its strong presence and pioneer role in countries such as China, Russia or India, will continue to generate dynamic growth in local currency in 2016. January 2016 confirms that particularly in mainland China, watch consumption rose strongly compared to the previous year, reason why, the Swatch Group expects growth of well over 5% in 2016 in local currency.

Contacts

Media

Bastien Buss, Corporate Communications
Phone: +41 32 343 66 80
The Swatch Group Ltd, Biel / Bienne (Switzerland)
E-mail: please use our «Contact Form»

Investors

Felix Knecht, Investor Relations Officer
Phone: +41 32 343 68 11
The Swatch Group Ltd, Biel / Bienne (Switzerland)
E-mail: please use our «Contact Form»

The Swatch Group AG issued this content on 03 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 03 February 2016 05:58:04 UTC

Original Document: http://www.swatchgroup.com/en/services/archive/2016/swatch_group_key_figures_2015